OLD ORCHARD BEACH — The town has adopted a policy that will allow it to more easily be in compliance with state law in regards to signing payroll warrants.
According to state law, a municipal finance director may disburse money on a warrant only if it is signed by the majority of municipal officers, unless the municipality adopts a written policy allowing a warrant be signed by less than a majority of municipal officers.
The town council unanimously voted Tuesday night to approve a policy that would allow one town councilor, acting on behalf of the council, to review, approve and sign the town treasurer’s disbursement warrants for wages and benefits.
Town Councilor Bob Quinn said the policy needed to be in place so the town would be in compliance with state law. He said the council was that night signing a payroll warrant that had gone out the week before and hadn’t been seen by the majority of the council.
The new policy does not designate a specific town councilor to sign the payroll warrants.
Quinn said under the new policy, councilors who don’t sign payroll warrants could review them after they’d been signed, so they would still get an opportunity to look at the warrants.
“We’d be in conformance with the law and be doing due diligence,” said Quinn.
The policy applies only to warrants for employee wages and benefits.
Town Manager Larry Mead said it wasn’t unusual for communities to have such policies, as “it’s a busy, busy time,” and it is frequently difficult to get a majority of officers to sign a payroll warrant before payroll is sent out.
The policy agreement is effective for one year, and may be amended before the year is up.
— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.
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